
THE Bank of Zambia (BoZ) says Zambia’s gross domestic product (GDP) growth is expected to remain strong driven by good performance of the mines and high copper prices on the international market.
BoZ assistant director financial markets Jonathan Chipili cited China and India’s economic expansion as a major factors driving demand for copper and pushing up metal prices.
At an economic review and trade finance seminar hosted by Access Bank in Lusaka last week, Dr Chipili said the projected strong GDP for Zambia will further be strengthened by increased foreign direct investment pledges.
“There is substantial private sector investment taking place in the mines. We are also seeing an increase in residential and commercial investment coupled with public works in roads, schools and hospitals,” he said.
He commended Government’s agriculture policy focusing on Farmer Input Support Programme.
Dr Chipili said the country’s foreign international reserves are also expected to strengthen since the external current account will remain in surplus as the interest rates reduce in line with inflation reflecting the confidence in the economy.
“The strong macroeconomic position that Zambia enjoys helped to withstand the effect of the global financial crisis. Going forward, the outlook for the Kwacha is expected to remain stable given high copper prices and good performance of the mines,” he said.
Dr Chipili said the country’s non- traditional exports (NTEs) that are a source of foreign currency have been growing recording over US$ 1 billion in exports with the mines accounting for 55 percent of the country’s exports and the remaining 45 percent from NTEs reflecting diversification of the economy.